One in three charities have no reserves
The National Council for Voluntary Organisations (NCVO) has recently published research which suggests one in three charities have no reserves. This would mean that any cuts to funding would threaten the survival of many organisations.
It was also found that levels of reserves differed depending on the type of organisation. Housing Associations held the largest reserves (typically 20 months worth of expenditure), whilst playgroups and nurseries held the least (only 1.4 months worth of expenditure).
As the recession has progressed, many charities have found that their services are more in demand than ever and it is therefore critical that voluntary organisations and charities properly prepare and plan for cuts to ensure they retain their ability to support those in need. For more information and advice see the NCVO website at http://www.ncvo-vol.org.uk.
Date: 26th August, 2010
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